Best Buy stock slips after earnings, CFO exit

Best Buy's first-quarter net income jumped more than  77% to $229 million, but its stock tumbled after the company announced the departure of its chief financial officer and warned of a slight hit coming in the second quarter.

The electronics retailer's revenue fell 1.3% to $8.4 billion in the quarter ended May 2, ahead of S&P Global Market Intelligence estimates of $8.3 billion.

Earnings per share, including discontinued operations, rose from 37 cents a year ago to 71 cents. That beat S&P Global Market Intelligence expectations of 35 cents.

Still, the company's stock (BBY) fell 7.4% to close at $30.55.

A financial hit connected to the company's services division and April's Japan earthquake is reducing availability of digital imaging products. Collectively, those factors are set to cut earnings per share by 12 cents to 13 cents in the second quarter, Best Buy said.

The company also said Sharon McCollam, chief financial officer, will relinquish the role on June 14. She will remain as an adviser until Jan. 28.

Chief strategic growth officer Corie Barry will become CFO, and the chief administrative officer duties will be split up. Her job will be filled by Asheesh Saksena, former executive vice president of strategy and new business development for Cox Communications.

Sales at U.S. Best Buy stores open at least a year fell 0.1% for the quarter. The company projected a flat same-store sales revenue performance in the second quarter.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.